India's new industrial revolution: Jefferies flags 6 high-growth sectors driving next expansion 

Global investment bank Jefferies highlighted India’s emerging industrial trajectory in a research report, pointing to a structural pivot driven by a vast domestic market, accelerating private-sector participation, and targeted government backing.

The report emphasises key policy enablers — including the opening of the space sector to private enterprise, tax holidays for data centres, production incentive schemes for semiconductors, electronics, and solar, along with government GPU purchases and aggressive local sourcing mandates.

Together, these catalysts are expanding domestic industrial capacity while elevating global competitiveness across six high-growth frontiers:

• Space: Recognised as one of the few spacefaring nations with globally competitive operational capabilities, India is targeting a 5x expansion of its space economy to $40-45 billion by 2030. Private space-tech startups, including Skyroot, Pixxel, and Agnikul, are transitioning rapidly toward commercial execution.  
• Semiconductors: Moving decisively from policy formulation to execution, the country has unlocked approximately $20 billion in committed capita. Works are underway on a major semiconductor fabrication plant alongside multiple OSAT (Outsourced Semiconductor Assembly and Test) projects commencing commercial production. An upcoming $13 billion incentive package is set to further deepen the ecosystem.
• Data Centres: Driven by rapid cloud adoption and digital integration, operational colocation capacity expanded 5x over the past five years to 2 GW. Projected to reach 10 GW over the next five years, this buildout represents a $45 billion capital investment opportunity spanning power infrastructure, advanced cooling, construction, and high-speed networking.  
• Electronics: Transitioning beyond basic final assembly, India is focusing on domestic component manufacturing and supply chain integration. Local value addition in mobile component manufacturing is projected to climb from under 20% to nearly 50% over the next six years.  
• Solar: India has established itself as the world’s second-largest solar PV manufacturer, supported by 35 GW of operational solar cell capacity and another 100 GW under construction. Localisation across the value chain is expected to reach 90% by 2030.  
• Aerospace: Leveraging cost-competitive manufacturing and technical engineering talent, domestic firms are mitigating global aerospace supply chain bottlenecks. Global OEMs Boeing and Airbus already procure $1.4-1.6 billion annually from India, while domestic suppliers continue expanding contracts with global OEMs and Tier-1 integrators.

India’s industrial trajectory is undergoing a structural pivot. Long established as a global heavyweight in traditional heavy manufacturing — ranking second globally in crude steel, cement, and two-wheelers — the nation is executing a synchronised push into capital-intensive, high-technology frontiers.